Melbourne, 31 October 2013 – Neighbouring Hobart properties trading as motoring icons BMW and Renault have been listed for sale through CBRE in conjunction with Edwards Windsor.
The high profile CBD showrooms at 23 and 25-29 Barrack Street are being offered in one line via a Public Expressions of Interest campaign closing Thursday 14th November.
CBRE’s Paul Tzamalis and Alex Zent are steering the campaign with Tim Johnstone and Kevin Jubb of Edwards Windsor.
Mr Tzamalis said the campaign was already generating significant buyer interest given the exceptional location of the two properties coupled with the strength of the tenancy covenant.
Tasman Auto Group, trading as BMW and Renault Hobart, leases both properties, providing a combined net annual income of $280,000, which is set to increase early next year.
“With two established and internationally brands, this offering represents a compelling investment opportunity,” Mr Tzamalis said.
“Given the quality of the covenants, and with interest rates at historical lows, 23 and 25-29 Barrack Street represent outstanding buying.”
The properties have a collective land area of approximately 1,969sqm set over two titles, with future redevelopment potential subject to the relevant planning approvals. The combined building area is approximately 1,013sqm.
The properties are located on the western fringe of the Hobart CBD, two blocks from the retail centre. The BMW site is located on the corner of Barrack and Collins Street, whilst the adjacent Renault site is located on the northern side of Barrack Street, between Liverpool and Collins Street.
Mr Johnstone said the area surrounding the properties had changed dramatically over the past five years, with the redevelopment of the former Westend Mechanical and Redline bus depot site into modern office buildings, occupied by Commonwealth Government tenants.
The former Hobart City car park, on the corner of Barrack and Liverpool Street, had meanwhile been redeveloped for residential use.
“The Barrack Street properties present an immediate and obvious investment opportunity with an even broader outlook for future development given the exceptional position of each site,” Mr Johnstone said.
“2013 has demonstrated that ‘A-grade’ investments underpinned by strong tenants are highly sought after as a direct result of the fall in interest rates. With this said, appetite has not been satisfied, with an obvious deficiency of ‘A-grade’ stock available.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.